1. 1.  What division offers offer integrated services.
    2.  What divisions structured to offer full range of products including treasury
    3.  What division increased expertise in trust services and advanced fp.

    PIC, Private Wealth Mgmt, Full Service Brokerage
    • 1.  Private Wealth Mgmt 
    • 2.  Full Services
    • 3.  PIC
  2. What occupational group make up the HNW client segment?
    • Entrepreneurs
    • Professional Service
    • Executives
    • Media and 
    • Sports Pros.
  3. What are the 3 main areas of CRM 1
    • 1.  Disclosure of the relationship
    • 2.  Enhanced Suitability
    • 3.  Management of Disclosure of any conflict of interest.
  4. What is the most significant protection implemented by CRM2
    Increased transparency and disclosure of fees
  5. Who regulates banks
    Banks are federally regulated by gov't of Canada under the bank act.
  6. In the WME risk is defined as
    Volatility of returns and measured by standard deviation
  7. Define Asset Location
    Decision to put specific assets in specific accounts (taxable to non-reg) and tax deferred to (rrsp)
  8. What two factors must be considered when determining the appropriate SAA for clients?
    • 1.  Investment Objectives
    • 2.  Market Expectations
  9. Name the four financial ratios (LOVR)
    • 1.  Liquidity
    • 2.  Operating Performace
    • 3.  Value
    • 4.  Risk Analysis
  10. Which category does inventory turnover ration fall under?
    Liquidity ration
  11. Using age approach how do you determine how much equity to purchase a client?
    • 100 minus age = % of equity
    • Example 20 year old person
    • 100 - 20 = 80% should be in equity
  12. Define two approaches to rebalancing and define them?
    1.  Calendar rebalance - rebalance at intervals such as semi annual, annual or every 6 months

    2.  Weight Based - Actual asset mix strays from SAA by a certain percentage will trigger a rebalance.
  13. Name the Ratio Category that the following fall under:
    - Liquidity (L)
    - Operating Performance (O)
    - Value (V)
    - Risk Analysis (R)

    1.  Current Ratio
    2.  Return of Capital
    3.  Dividend Yield
    4.  Debt to total assets or Debt Capacity
    5.  Quick Ratio
    6.  Net Income Margin
    7.  Return of Equity
    8.  Earnings per Share
    9.  Interest Coverage / Debt Coverage
    • 1.  Liquidity
    • 2.  Operating Performance
    • 3.  Value
    • 4.  Risk Analysis
    • 5.  Liquidity
    • 6.  Operating Performance
    • 7.  Operating Performance
    • 8.  Value
    • 9.  Risk Analysis.
  14. If the current market value is below the intrinsic value.  The stock is ______ and you want to _____ and if the instrinsic value is above the stock is considered __________ and you want to _____
    Under valued (BUY)

    Over valued (Sell)
  15. How much can you borrow under the Home Buyers Plan?
    How long do you have to repay the HBP?
    When do payments need to begin for HBP?
    • $35000
    • 15 years
    • Second calendar year from when withdrawal was made.  Withdrawn in 2020, repayment begins in 2022
  16. How long/many years must pass before you can participate in the HBP program again
    4 years
  17. To qualify for HBP what 2 things must occur?
    1.  Household income must be less than $120,000

    2.  Mortgage and Incentive can't be 4x annual income.  Example a couple that earns $100,000 in income can't exceed $400,000 from HBP
  18. How much does a person need for a down payment under FTHBI?


    What is the annual income threshold for a marginal tax rate of 50%

  19. If a person uses a vehicle for work and receives compensation.  What are the the two threshold to be considered a taxable benefit and must be reported on taxes.
    • $0.58 on the first 5000 km
    • $0.52 on the next 5000 km
  20. For the Canada Child Benefit, a personal with a net income of ___________ qualifies for the max benefit.  What amounts will you receive?
    Less than $31,120 will receive $6639 per child under 6 and $5602 per child 6 - 17
  21. What is the Lifetime Capital Gain exemption and when can a person use it?
    Used to shelter a certain capital gain during disposition of farming, fishing and shares of small business (CCPC)
  22. To be eligibile for Lifetime Capital gain exemption - what criteria must be met?
    Owned for 24 months ( 2 years) prior to sale and/or 50% of corporate assets must be used in an active business
  23. What is the donation tax credit on a regular donor?
    • Up to 75% of the net income to qualify for a federal credit of 
    • 15% on the first $200 then 
    • 29% on the balance
  24. What is the donation ta credit on a HNW client?
    33% for income earned over $210,371
  25. What is the max contribution limit for TFSA in 2019 and 2020?
    • 2019 - $63,500
    • 2020 - $69,500
  26. What is the max 2019 and 2020 rrsp contribution
    • 2019 - $27, 230
    • 2020 - $27,830
  27. What is the amount applied (deducted) for YBE?
    If a person earns income over, then OAS is clawbacked?
    • $3500
    • $77,580
  28. What amount is clawbacked on OAS once a person earns over $77,580
    15% or 15 cents for every dollar earned over $77,580
  29. OAS is fully clawbacked once you earn an income of _______?
  30. What are the 4 stages of concern and the age range in a client's life cycle/stage?
    • 1.  Approaching retirement (Age 50 - 62)
    • 2.  Early Retirement (63 - 67)
    • 3.  Fully Retired (68 - 75)
    • 4.  Late Stage Retirement (76 +)
  31. Can HBP be repaid to a spousal RRSP?
    CAn HBP be repaid to your own RRSP at Bank A if withdrawn from Bank B?
    • NO
    • YES
  32. For 2020 what amount is the Defined Benefit Pension Max Benefit?
    $3000 per year of service
  33. IPP permit higher tax deductible contribution than those allowed under RRSP.  Due to the fees involved IPP is generally appropriate for salaries greater than_________.

    Similiar to IPP - RCA are appropriate for clients that are (Name two)?

    1.  Owners of Private Corp or Executives with salaries higher than $151, 278
  34. What percentage does each employee contribute to CPP?
    What percentage does self employed pay to CPP?

  35. What are the 4 tests to determine if you have a right vs wrong situation?
    • 1.  Legal Test - Is this legal
    • 2.  Smell Test - Does it smell or feel funny
    • 3.  Front Page Test - How will it look on front page of news
    • 4.  MOM test - would you tell your mom
    • (Right vs Wrong)
  36. What a 3 diligence components and 4 associated requirements from KYC rules?
    • 1.  Identify and Creditworthiness
    •  --> Each member must learn facts related to all clients, accounts and trades
    • 2.  Business Conduct
    • --> Ensure good orders accepted and within bounds of good business 
    • 3.  Suitability
    • -->  Ensure each order is suitable
  37. IIROC CRM rule requires the following information be reviewed every time there is a triggering event.  Name the triggering events.
    • 1.  Trade
    • 2.  Recommendation is made
    • 3.  Securities are deposited
    • 4.  Change in account Manager
    • 5.  Material changes to account
  38. What is it called when an advisor has the ability to enter trades on behalf of a client without the client having direct contact with the person on the other side.
    Law of Agency
  39. Define Conflict of Interest
    Occurs when a duty owed to one party conflicts with a duty owed to another party
  40. In Quebec "agency" is called ______?
  41. Name 5 registered code of ethics and standard of conducts
    • 1  Exercise good care
    • 2.  Act w integrity, fairness and honesty
    • 3.  Conduct professional and keep consistent updated with knowledge
    • 4.  Act in accordance with securites act
    • 5.  Maintain complete confidence of client info
  42. Define standard deviation

    Higher the SD, the _________ the security?
    Extent to which year over year returns vary from avg or expected return. 

  43. Define liquidity and the amount recommended for risk adverse clients vs not risk adverse?
    • Refers to amount of cash and cash equivalent
    • Wealthy risk tolerant clients should have 5% in cash
    • Risk adverse clients should have 10% in cash
  44. What are 3 reasons a client would need liquidity and how much liquidity is recommended?
    • 1.  Ongoing Income Needs
    • 2.  Emergencies
    • 3.  Anticipated Big Purchases

    Recommend 3-6 months LIVING EXPENSES
  45. Define Asset Location?
    Percentage of the portfolio to be held in different asset classes
  46. Name the recommended max of asset classes a client should have
    4 - 6
  47. What 4 regulatory info do you need to collect during the discovery process?
    • 1.  Goals
    • 2.  Financial Info
    • 3.  Objectives
    • 4.  Investment Constraints
  48. Define required return vs required objectives?
    Required return = required to meet client objective (is it reasonable)

    Required Objective = how much of the client portfolio is expected to earn each year
  49. Name 3 ways the return objective can be defined?
    • 1.  Inflation - Adjusted Basis
    • 2.  After Tax Basis
    • 3.  After TAx Inflation Adjusted Basis
  50. Define Home Bias?
    Avoid buying foreign investment.
  51. Name 4 key tips regarding cashflow?
    • 1.  Cashflow exceeds outflow - positive
    • 2.  Convert cashflow items to same time frame (monthly)
    • 3.  Include expenses 
    • 4.  PAC contribution are cah flow
  52. How do you calculate money weighted return?
    • Ending value of portfolio minus Starting Value the subtract the deposits and add back the withdrawals divided by Starting value plus deposits.
    • Example:  Portfolio of 200K is now worth $250K, client deposited $5k and again $3k.  Later that year withdrew $1000.  What is the weighted return:
    • $250K minus $200K minus $5k minus $3K plus $1k divided by $200K plus $5K plus $3k
  53. What is considered the foundation of a financial plan?
    Projected cashflow statements
  54. What is recommended for emergency fund?
    3 - 6 months of LIVING expense (not income)
  55. Define affordability and name 2 ratios used to determine affordability?
    Gross Debt Ration and Total Debt Services Ratio
  56. Name 4 financial issues a client will identify during "Bridging the financial discovery"
    • 1.  Accumulating Wealth
    • 2.  Protecting Wealth
    • 3.  Converting Wealth to Income
    • 4.  Transferring Wealth to Heirs
  57. Define discretionary expenses vs fixed?
    • Discretionary is food, vacation clothes and 
    • Fixed is mortgage, rent, car payment
  58. Is low risk tolerance considered an investment constraint?
    No it is an objective
  59. What 2 retirement planning variables are beyond a clients controljQuery112407352342174756128_1615346325654
    • 1.  Amount of savings they have in place
    • 2.  Inflation rate prior or during retirement
  60. Define Net Worth
    • Assets minus liabilities or 
    • assets exceed liabilities
  61. Define net cash flow?
    cash inflow minus cash outflows
  62. Define Mortgage
    Pledge of ownership of real property as security for a loan
  63. Define real property?
    Any right interest benefit in land which includes mines minerals and improvements.
  64. Define usufuct
    Right of use and enjoyment for a specific period of time o a property is owned by someone else
  65. Define use?
    Right to enjoy another property for a period of time and take revenue from the land such as crops
  66. Define Servitude?
    Change placed on a immovable property in favour of another immovable property that belongs to some else.  Allow a gas line.
  67. Define Emphyteusis or Leasehold?
    Granting of the right for one person to enjoy immovable property (land) that is owned by another person
  68. Name the 5 C's of Credit?
    • Capacity
    • Character
    • Collateral 
    • Capital
    • Credit
  69. Primary mortgage market is defined as what?
    Refers to the primary retail source of the mortgage - example someone applies for a mortgage.
  70. Banks are regulated by ___________ and compliance is monitored by the federal ____________?
    Bank Act --> Office of the SuperIndendant (OSFI)
  71. What is it called when the bank act restricts banks from lending 80% of a property appraised value?
    Loan to Value
  72. Define MBS?
    pool or block of residential mortgages that have been grouped securitized or grouped together and sold to private investor
  73. Define Accessory Real Right
    • Rights provided by a link attaching the claim directly to the property.
    • Lender placing a lien
  74. The purchase of a home is __________?
    Primary Real Right
  75. Right to encumber a property with a ______ is an accessory real right?
  76. Most mortgages have an acceleration clause.  What does that mean?
    If payment is missed, the lender has the right to make the entire mortgage immediately due
  77. Define Municipal Taxation
    Municipalities tax real property in all jurisdictions
  78. Define Eminent Domain
    Gov't have he power to use property for public use with compensation to the owner
  79. Define Easement
    an acquired right to use another's real estate for such use as road access or placement of hydro
  80. What is freehold interest in land?
    is an interest in land for an indefinite period of time that confers to full benefits of ownership
  81. What is leasehold
    Property held under tenure of a lease, right to use and occupancy of real property
  82. What is Condo Interest
    multi unit structure or property in which persons hold fee simple title too
  83. How can you determine if you have a right vs right dilemma
    • 1.  Truth vs Loyalty
    • 2.  Individual vs Group
    • 3.  Short Term vs Long Term
    • 4.  Justice vs Mercy
  84. Define Ends Based Ethical Thinking
    Great good for greater people
  85. Define rule based ethical thinking
    Create suitable rules for others to follow in similar situations
  86. Define social contract based ethical thinking
    Create harmonious relationships
  87. What is personalistic based ethical thinking
    Create a situation that is authentic to who you are
  88. Define truth vs loyalty or (Dilemma is Integrity)
    Best friend cheats on wife who is a friend.

    Tell wife or stand by your friend
  89. Define Individual vs Group (Dilemma is Goal BAsed)
    Proposal to increase fee on a product that will lower cost for your clients but increase fees for your largest and loyal client
  90. Define Justice vs Mercy (Dilemma is Fairness)
    New employee works so hard but made a mistake for grounds for dismissal.  Keep him or fire him.
  91. What is moral standard?
    Based on reason and can't be changed by law or regulation
  92. What are 3 examples of values
    • 1.  Values are beliefs not facts
    • 2.  Values are long lasting
    • 3.  Values provide guidance of ones behaviors
  93. What are right vs right and then right vs wrong
    • Right vs Right
    • Truth vs Loyalty
    • Individual vs Group
    • Justice vs Mercy
    • Right vs Wrong
    • One is illegal
    • One decision lacks truth
    • Negative consequence outweighs positive
    • Decision doesn' conform to society widely shared and understood values
  94. What are 3 ethical principals?
    • 1.  Standards that guide a particular group
    • 2.  Set of morals or values
    • 3.  Study of morality or moral choice
  95. Define unified value
    System in which a mean value and end value mutual reinforce each other (unify)
  96. Name 2 types of ethical dilemma?
    • Right vs Wrong
    • Right vs Right
  97. Personal goals are influenced by means values and ends value - Define each
    • Means Value:  What you need to do today to reach your future goals.  Action you take today.
    • Example.  Deter romantic relationship so you can work 80+ hours a week

    • Ends Value:  Where you see your life heading in the future.  How we act today.
    • Example..Become wealthy by the age of 40.
  98. Trust is establish in an advisor if these 3 things are present
    • 1.  Specialized Knowledge
    • 2.  Well Regulated Industry
    • 3.  Client first approach
  99. Client willingness to trust an advisor should have what 3 elements in the relationship
    • 1.  Disclosure of Information
    • 2.  Influence over decision
    • 3.  Share of Control
  100. What is the wealth management process
    • 1.  Understanding the client
    • 2.  Formulating the plan
    • 3.  Formalizing and implementing the plan
    • 4.  Review, Rebalance and Reporting
  101. What is the definition of ethics?
    A set of consistent values that guide individuals behavior
  102. Name some traditional attributes or soft sklls possess by advisors
    • 1.  Trust
    • 2. Honest and Ethical
    • 3.  Good communication
    • 4.  Motivated, Entreprenuial
  103. Name some emerging attributes and most important of advisors
    • 1.  Evolve to stay relevant
    • 2.  Coach/Educate clients to achieve self fulfillment
    • 3.  Organize and manage a team of professionals
  104. Securities Dealers are regulated _________?
  105. Name the 4 professional competency?
    • 1.  Build and manage client relationships
    • 2.  Evaluate client needs and goals
    • 3.  Coordinate when required trusted team of experts
    • 4.  Use custom marketing strategies to build platform
  106. What two reports must firms provide annually to clients as part of CRM2
    Performance Report and Fee reports
  107. Bank owned firms or trustee services are regulated by__________?
  108. Credit unions and Caisse Populairs are regulated __________?
    Provincial Government
  109. Insurance Companies are regulated by?
    Federal Gov't under Insurance Companies Act
  110. TRust and loan companies are regulated by ________?
    Both provincial and federal
  111. Mutual Funds are regulated by?
    MFDA or in Quebec its AMF
  112. What % does a self employed person must contribute to CPP?
    10.20% - 5.10% as employee and 5.10% as employer
  113. Name the 3 business models
    • Fully Integrated (Comprehensive)
    • Semi Integrated (Limited)
    • Mono-Line (Single set of services)
  114. What are the key trends shaping the future of wealth management?
    • 1.  Aging clients
    • 2.  Increased Competition
    • 3.  Advances in Technology
  115. Define the demographics of investors and when they were born?
    • Millenials 81 - 2000
    • Gen-x - 66 - 80
    • Baby Boomer - 46 - 65
    • Silent Gen - 25 - 45
  116. Define 3 competitive factors for advisors?
    • 1.  Competition between channels
    • 2.  Competition in mass markets
    • 3.  Competition in pricing
  117. Define Cryptocurrencies?
    Form of digital currency that is encrypted
  118. Name 6 Cdn Stock Markets
    • 1.  TSX
    • 2.  TSX Venture
    • 3.  TSX Alpha Change
    • 4.  Cdn Secuities Exchange
    • 5.  Neo
    • 6.  Nasdaq
  119. Global Industry Classification standard is broken down in 11 sectors.  Name as many as possible
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financials
    • Health
    • Industrials
    • IT
    • Materials
    • Communication Services
    • Utilities
    • Real EState
  120. What criteria does a client need to meet to be considered a HNW client?
    $1,000,000 in investable assets
  121. Name 3 wealth management channels?
    • Private Wealth Mgmt (PWM)
    • Full Services (FSB)
    • Private INvestment Councel (PIC)
  122. Define FATCA and what do they do?
    Foreign Account Tax Compliance Act.  Enacted in 2010 by USA to reduce tax evasion
  123. Definate Personal Information Protection Electronic Documents Act (PEPEDA)
    Governs how personal information is collected, used and disclosed.  Prevent, detect money laundering and terrorist financing.
  124. Is self actualization at the bottom or the top of Abraham Maslow hierarchy of needs pyramid?
  125. What is CSA and what do they do?
    Canadian Securities Administrators - protects investors from unfair, improper or fraudulent practices and foster fair and efficient capital markets
  126. Of the major organization groups which 2 are the fastest growing segments?
    Entrepreneurs and Retirees
  127. What is the self regulation organization for the sale of mutual funds
  128. Investor Economics (within CSI) "white paper" details nine competencies that make a wealth advisor successful, these competencies can be divided into what two domains?
    Technical and Professional
  129. What is the self regulatory SRO  for dealers that trade debt and equity issues in CAnada?
  130. What does the PIPEDA govern
    Personal Information and Electronic Documents and governs how personal information is collected, used and disclosed.
  131. Pioneered by Fintech Companies, what type of advisors help clients create their own customer investment portfolio using online services
    Robo Advisors
  132. As a min - how often should a portfolio be reviewed.
    Annually unless there is a material change.
  133. What is the name of the act to reduce tax evasion in the USA
  134. There are 3 competitive forces in the wealth mgmt industry.  One force is competition between channels.  Can you name the other 2?
    • Competition between channels
    • Competition in mass markets
    • Competitive pricing and press to reduce fees
  135. What is the primary disclosure doc for mutual funds?
    Fund fact sheet
  136. Is FATCA designed to reduce tax evasion on account held inside USA or outside
  137. Does crytocurrency allow for more secure or less secure electronic transactions
    more security because its encrypted
  138. What are the 3 main business models or delivery channels dedicated to serve the HNW segment of the market
    • Private Wealth Mgmt (PWM)
    • Full Service (FSB)
    • Private Investment Counsel (PIC)
  139. Who created the hierarch of needs pyramid
    Abraham Maslow
  140. What two reports were introduced by CRM2
    Fee statements and performance
  141. In what way did CRM2 impact a mutual fund requirement to provide investors with a fund fact document
    CRM1 required delivery of fund fact sheet after the sale of a mutual fund however CRM2 required it before the sale.
  142. What does the acronym PCMLTFA stand for?
    Proceeds of Crime (Money Laundering) and Terrorist Financing Act
  143. The 3 main business models or delivery channels dedicated to the high net worth segment are private wealth professional, full services brokerage and PIC.  Which one offers full integrated services suh aas private banking, investment counseling and trust services
    Private Wealth Managment
  144. What was the purpose of CRM2
    Great transparency
  145. Are insurance companies federally or provincially regulated
    Federally - by Gov't of Canada under the insurance company act
  146. Are banks regulated provincially or federally
    Banks are federal
  147. Trust and Loan Companies regulated Federally or Provincially
  148. Robo Advisors are attractive to what 5 types of client attributes?
    • Younger (not close to retirement)
    • Comfortable w Technology
    • Comfortable w Self Directed
    • Less Complex Needs
    • Fee Conscious
  149. In Canada what % of HNW are either led by baby boomers or people of an older age
    2 out of every 3 HNW households
  150. What are the 4 proper order of the steps in the wealth management process
    • Understanding the client
    • Formulate the plan
    • Implement the plan
    • Reporting, Review and Rebalancing
  151. What gives an advisor the ability to enter trades on behalf of a client without contact with the person on the other side of the transaction
    Law of agency
  152. What is rules based ethical thinking?
    If followed, create suitable rules for others in the world to follow.
  153. What are the four test to help determine if an issue is right vs wrong?
    • Smell test
    • Mom test
    • Front Page Test
    • Legal Test
  154. How would you define agency relationships
    Agency is defined as a relationship in which one party (agent) is authorized to bring another party (principle) into a contractual relationship with a 3rd party.
  155. What are 3 elements that need to be present for trust based relationship to develop between advisor and their clients
    • 1.  Specialized Knowledge
    • 2. Belongs to an industry well regulated
    • 3.  Places the interest of the client ahead of their own
  156. What is ends based ethical thinking
    If followed would result in the greatest good for greatest number of people
  157. What is social contract based ethical thinking?
    If followed, creates harmonious relationships
  158. With a unified value system, what two things reinforce or unify each other?
    When a means value and end value mutually reinforce each other
  159. What is arguably the most significant risk to the financial industry
    Reputational Risk
  160. What is personalistic based ethical thinking
    If followed it would create a situation that is authentic to who you are?
  161. How is principle based thinking different from rules based.
    Principle Based - rather than being subjected to rules industry participants are required to apply judgement and discretion
  162. What two qualities does an advisor need to possess for a trust relationship to develop
    • Competence
    • Integrity
  163. When does fiduciary duty typically exist?
    Relationship where one person holds a position of trust.
  164. For business code of ethics to be effective, what 4 items are required
    • Code must be supported by senior mgmt
    • Employees must participate - buy in
    • Reviewed periodically and updated
    • Implemented with training and be reinforced.
  165. There are 4 main right vs right dilemmas.  Name them...
    • Truth vs Loyalty
    • Individual vs Group
    • Short Term vs Long Term
    • Justice vs Mercy
  166. What POA is commonly used in the financial industry
    General POA
  167. How can ethics be broadly defined?
    Set of consistent values that guide behavior
  168. What are means value and ends values
    Means value - what you to today to reach future goals.  Action taken.

    Ends - Where do you see life headed in the future.  Influence how we act.
  169. What is ethical dilemma
    When two or more possible choices will pit value against each other
  170. What is Quebec term for agency
  171. With a right vs wrong dilemma, at least one of which 4 things is usually present
    • One is illegal
    • One decision lacks truth
    • Negative results outweigh positive
    • One does not conform to society widely shared and understood values
  172. What are some characteristics of values
    • Values are beliefs no facts
    • Values are long lasting
    • Values provide guidance on behaviors and goals
  173. What are 3 main reasons clients require liquidity in their portfolios
    • Ongoing Income Needs
    • Emergencies
    • Anticipated significant purchases
  174. Once the appropriate risk tolerance is determined, the risk objectives must be clearly stated.  What are 3 ways this can be stated?
    • 1. Stating desired asset mix
    • 2. Determine the appropriate standard deviation
    • 3. State of the maximum negative return the client will tolerate in a give year
  175. Unique circumstances are specific to each client.  Can you provide 2 examples
    Buy ethical (not tobacco) or "sin stocks".  Referred to as ethical or socially responsible

    Don't invest in companies inhume or in child labour
  176. Determine an individual risk tolerance involves assessing what two things?
    Willingness and ability to assume risk
  177. If __________ is greater than _____________ than a higher risk will be tolerated
    ability is greater than willingness
  178. Determine which investment should be placed in a registered account vs non-registered is referred to as what?
    Asset location
  179. Do liquidity requirements represent actual cash needs, potential cash needs or both
  180. What are 3 distinct phases to the wealth mgmt approach to client discovery
    • Set the stage and build rapport
    • Conduct emotional discovery
    • Bridging to Financial
  181. Liquidity refers to the amount of cash and equivalent that is required in a portfolio.  What portion of the portfolio should typically be held in cash.
    5% or 10% in risk adverse clients
  182. How did the CSA change the rules pertaining to discount brokerages and KYC rules?
    KYC rules
  183. Deciding what % of a portoflio should be held in various asset classes is __________?
    Asset Allocation
  184. What is the difference between required return and objective return?
    Required return - estimated avg. annual return required to meet the client goals

    Objective return - measure of how much the client's portfolio is expected to earn each year.
  185. What is the difference between mortgagee and mortgagor
    • Mortgagee is the lender
    • Mortgagor is the borrower
  186. What test asses the mortgagor ability to withstand higher payment should interest rates be higher upon renewal
    Stress test
  187. What represents the least risk to a lender - personal loan or revolving credit facilty?
    Personal Loan
  188. Affordability is determined by which two debt services ratios
  189. Which of the 5 C's of credit may put a lenders mind at ease when a borrower is filing for bankruptcy
  190. Which of the 5 C's of credit refers to the trust worthiness of a borrow to pay debt
  191. What 5c of credit defines teh ability for a person to pay down debt
  192. What two major variables determine how much a mortgage lender will lend
    Market Value and the Ability to Repay
  193. What is a rough guideline for an appropriate emergency fund?
    3 - 6 month of living expenses
  194. What are some reasons to implement net worth planning
    • Establish Financial Discipline
    • Meet Future Target
    • Measure Progress
    • Feel secure about the future
  195. What are the 5 C's of credit
    • Capacity
    • Character
    • Credit
    • Collateral
    • Capital
  196. What are 4 savings strategies that can help individuals get started building upon what they are already doing?>
    • 1.  Set realistic goals
    • 2.  Set up automatic savings plan
    • 3.  Resist buying on credit
    • 4.  Reward yourself
  197. What is retail credit card
    Credit card fro big box stores like Cdn Tire
  198. How is cash flow calculated
    Cash Inflows minus Cash Outflows
  199. From a wealthy mgmt perspective what is a primary reason for cash mgmt
    To help clients determine if their rate of savings is enough to achieve their financials goals
  200. Does net worth statement reflect a specific date or a period of time
    Specific Date
  201. What 3 factors does TDS ratio factor in
    • Principal + Interest + Property Taxes + Heat 
    • _____________________________
    • Gross Annual Income
  202. How do you calculate the percentage that should be used for credit card payment calc?
    3% of the outstanding balance
  203. What is a conveyance of an interest in land as security for debt referred to as?
    A Mortgage
  204. In a mortgage agreement - what is an acceleration clause
    If a payment is missed the lender has the right to make the entire mortgage immediately due.
  205. Does the stress test apply when a mortgage is being renewed with the same lending institution
  206. What type of mortgage allows a homeowner aged 55 or older to access the equity in his home tax free without having to sell or make payments
    Reverse mortgage - 55/55 rule (age 55)
  207. With foreclosure if there are any remaining funds does the money belong to the homeowner or the lender
  208. With tenancy in common ownership which 4 unities must be present?
    • Possession
    • Title
    • Time
    • Interest
  209. Who does mortgage insurance protect?
  210. What are the max allowable GDS and TDS ratios?
    GDS = 32% and TDS = 40%
  211. Would a high risk mortgage loan be funded in the primary or secondary market
  212. What is the definition of portfolio?
    Risk - Volatility of returns within a portfolio
  213. Volatility of returns is defined using a measure called _________?
    Standard Deviation
  214. Perfect diversification is achieved hen stocks are correlated how?
    Perfect Negatively Correlated.
  215. 2019 budget proposed changes to HBP to assist thru divorce.  What criteria must be met to qualify under the scenerio
    Lived apart 90 days and not living with a new spouse or common law.
  216. With a CMHC insured mortgage - CAD gov't essentially ensures the loan to value will be repaid if the borrower defaults.  Who pays the premium for this coverage.
  217. When may a lender use an automated value (AVM) mgmt tool for loan appraisals?
    When LTV is 95% below and no usual characteristics about the home.
  218. What gives the gov't the right to take an individual land for public use.
    Eminent Domain
  219. What is Quebec term for mortgage
  220. When it comes to real estate ownership, what are the 4 unties
    • Possession
    • Interest
    • Time
    • Title
  221. With a condo corp is the unit owners lender entitled to vote at a condo meeting
    Technically Yes
  222. What is the max LTV allowed for a non-insured mortgage
    80% for non insured.
  223. In terms of compounding how does federal interest act require the interest to be calculated on a mortgage.
    Semi Annually
  224. What is the break point where a mortgage loan becomes a high ratio mortgage
    80% LTV
  225. Under what circumstances would a "blend and extend" be suitable for a mortgage borrower?
    Take advantage of attractive rates
  226. How does the course define mortgage back securities
    Pool of residential mortgages that have been securitized and sold to institutional investors
  227. How does the income stream on a fixed rate bond compare to a fixed mortgage or mortgaged backed securities
    Unlike bonds, income received by MBS varies because mortgages provided borrower with pre payment options
  228. With tenant in fee simple ownership what does the word simple refer to?
  229. Define real property
    Real Property - Any right in land which includes mines, minerals and improvement on above or below
  230. What are 2 ways the penalty can be cacl. if paying off a closed mortgage prior to maturity
    3 months interest or interest rate differential
  231. What options does the borrower have in terms of paying CMHC
    Lump sum or added to the mortgage
  232. In Quebec, what is the term for lease?
  233. What are some of the legal remedies a lender can employ if the borrower is in default on a mortgage loan?
    • Power of Sale 
    • Foreclosure
    • Sue
    • Take Possession
  234. What is an estoppel certificate
    Document issued by a condo corp that gives potential purchasers info about a specific condo
  235. What is difference between open mortgage and closed mortgage
    Open mortgage - Borrower can make extra payments and even pay in full

    Closed mortgage - Can't prepay or pay mortgage in full
  236. What does the Quebec term usufruct refer to?
    Right to use and enjoy for a specific period of time of a property owned by someone else
  237. What is a portable mortgage?
    Buyer purchasing new home, lender will let him "port" or move existing mortgage to new property
  238. What are the income restrictions to qualify for the first time HBP incentive program (FTHBI)
    Under $120,000
  239. The act of taking real property by the gov't is known as?
  240. What system of land registration is also known as Torrens System
    Land Titles System
  241. What 3 variables does the TDS factor in?
    • Principle + Interest + Property Taxes + Heating + Other Debt (or credit card)
    • _____________________________________
    • Gross Annual Income
  242. Hydro Co. having the right to come to property to read meter, lay pipes is know at what?
  243. Which is the most efficient system of registration?  Registry or Land Titles?
    Land Titles
  244. What things are required for a domestic contract to be enforceable?
    • 1.  Be in writing
    • 2.  Signed by both parties
    • 3.  Witnessed
  245. What is a sole custody order?
    One parent has legal decision making responsibility
  246. What does cohabitation agreement primarily deal with?
    Issues expected to arise if the relationship breaks down
  247. A domestic contract can be overturned if it deemed to be an unconscionable transaction.  What constitutes unconscionable.
    It would have to "shock the conscience of the court"
  248. What is the legal definition  of marriage under the federal civil marriage act?
    The lawful union of two persons to the exclusion of all others.
  249. In Ontario, what are 3 common contracts
    • 1.  Marriage
    • 2.  Cohabitation
    • 3. Seperation
  250. What is a seperate regime of property?
    All property whether acquired prior or during the relationship and any increased value are owned strictly to title
  251. In Ontario, divorce couple seek care of children - which act will apply?
    Divorce Act
  252. The federal civil marriage act has 3 requirements for those who wish to marry.  Can you name them?
    • 1.  Minimum age of 16
    • 2.  Consent - both understand and free to consent
    • 3.  Previous marriage is annulled or divorced
  253. Domestic contracts are considered legal contracts.  In order for a valid and enforceable contact to exist under common law, what 5 pre-requistics must be present?
    • 1.  Valid offer and acceptance
    • 2.  Legally competent
    • 3.  Mutual consideration
    • 4.  Genuine Intention
    • 5.  Lawful object of the contract
  254. What is the purpose of ILA?
    Independent Legal Advice - to ensure you're not opting out of marriage legislation put in place to protect them
  255. What is corollary issue?
    Secondary issue that needs to be resolved prior to resolving the main issue.
  256. What constitutes shared parenting?
    When each parent has child in car for 40% of the time.
  257. ___________ describes the relationship or sensitivity between the return on a security and the market return is other words systematic risk
  258. Studies suggest that as few as _______ stocks can essentially fully diversify an equity portfolio by removing all unsystematic risk
    15 - 20 stocks
  259. Systematic risk - essentially _______- can't be diversified away.
    Market Risk
  260. Define diversification for WME
    combining securities that are less than perfectly positively correlated in order to lower the portfolio overall standard deviation without giving up any of the portfolio return
  261. Define sovereign risk?
    Involves the chance of losing money as a result of political forces in a foreign nation
  262. Creating a portfolio without considering how the individual securities perform in relationship to one another is known as _____________
    Naive diversification
  263. What procedure did Markowitz develop meaning to consider how closely the returns of each stock is related?
    Mean Variance Optimization
  264. How long will CRA consider a sufficient time frame to settle an estate
    36 months or 3 years
  265. Name the 3 components to an asset allocation
    • 1.  Strategic Asset Allocation
    • 2.  Rebalancing Strategy
    • 3.  Tactical Asset Allocation
  266. What are the 3 main asset classes
    • Cash and Cash Equiv
    • Fixed Income
    • Equities
  267. In 1952 what theory did Henry Markowitz follow?
    Developed mathematical definition of portfolio risk

    Created a procedure to identify the composition of the portfolio that optimized trade off between risk and return that must be made.
  268. Define IPS
    Written document that contains the guidelines and rules by which to operate a clients account.
  269. Name two most common passive strategies
    • Indexing (S&P500)
    • Buy and Hold
  270. In 1964 what theory did William Sharpe develope?
    • Developed capital asset pricing model (CAPM)
    • - market portfolio is a weighted average portfolio of all possible assets
    • -expected return on a portfolio is linearly related to the portfolio risk in relation to the risk of the market
  271. Define the difference between strategic asset allocation, rebalancing strategy and tactical asset allocation
    • SAA - Set portfolio long term asset allocation
    • Rebalance - Up and Down plus accumulated div will cause SAA to drift and will need to be rebalanced
    • Tactical AA - shift portfolio towards a strategy.  If bonds expected to perform better than equities then rebalance towards bonds until strategy accomplished
  272. Define Intestate
    Pass away without having a will.
  273. Define passing of the accounts
    Compensation to settle an estate is determined by the courts
  274. Under common law it's assumed that a trust is __________ unless stated otherwise in the trust documents.
  275. What section of the Income Tax Act is for estate freeze
    Section 85
  276. What 4 returns may need to be prepared upon death
    • Rights or Things
    • Testamentary
    • Business
    • Personal
  277. Define Term Certain or Fixed Annuity
    The term is certain - payment period is exact and known in advance
  278. Define straight life annuity
    Pays an income until the annuitant death
  279. Define joint life annuity
    Pays an income until the joint annuitant death
  280. Name 3 types of maturity guarantees
    • Deposit Based Guarantee
    • Yearly Policy Base
    • Policy Based Guarantee
  281. Name the 3 parties in an annuity contract
    • 1.  Insurer
    • 2.  Policy Holder
    • 3.  Annuitant
  282. Define minimum capital and surplus requirements (MCSR)
    OSFI establishes that insurers of annuity have set aside enough funds to cover guarantees
  283. What is assuri?
    Non-Profit organization that provides a level of protection if an insurer becomes insolvent or unable to make promised annuity payments
  284. LRSP are governed by __________ legislation and LIRA are governed ______?
    Federally and provincially
  285. What is this years basic exemption amount (YBE)
  286. Name the 4 main types of annuities?
    • 1.  Term certain annuities
    • 2.  Straight Life Annuities
    • 3.  Joint Life Annities
    • 4.  Deferred Annuties
  287. What is the calc for min RRIF payment for
    70 yrs or less
    71 - 94
    • 70 yrs of less = min amount equals the market value at beginning of the calendar year divided by # of years left until 90
    • 71-94 = a percentage that increases each year until it becomes fixed at 20% once the hold reaches 95
    • 95+ - value of RRIF X 20%
  288. Defined contribution pension plans are also known as?
    Money purchase plans
  289. What two types of Defined Benefit Pension Plans (DBP) are easily integrated with CPP?
    • Career Average 
    • Final Average Plan
  290. Name the 2 calculations used for Defined Benefit Formula to determine the lesser amount a retiree will receive from an employer
    • 2% average earns x 35  (# of years employed)
    • or
    • $2000 x # of years employed
  291. What is the impact of IPP on RRSP contribution room?
    Once IPP is established the max amount that can be contributed to an RRSP is $600
  292. DBP maximum pension benefit for 2020 has changed to ___ of the money purchase plan
  293. How do calc for pension adjustment contributions made via dcp vs dbp
    DCP - equals total contribution made by you and employers If $7000 was made in total in 2019 contribution of $26,30 - $7000

    DBP - Pension adjustment = (9X benefit) - $600
  294. Name 5 non qualified investments in an RRSP
    • Precious Jewels, ems and Stones
    • Shares and Debt Obligations
    • Real Estate
    • Personal and Listed Property - Art and Antiques
    • Commodity and Future Contracts
  295. Under the lifelong learning plan (LLP) you can borrow _______ from your RRSP to finance education
  296. How long must a person hold a LSVCC to keep the tax credit
    8 years
  297. What is the maximum lifetime contribution amount for RESP vs RDSP and the lifetime maximum grant?  Again for Canada Disability Savings Bond?
    • RESP - $50,000 - $7200 grant
    • RDSP - 200,000 - $7000 grant
    • CDSB - $20,000 lifetime grant
  298. What is the max contribution age for RESP vs RDSP? AND Max length the plan can be open?
    • RESP = 17 yrs age to contribute
    • RDSP = 49 yrs age to contribut

    • RESP = close by 31st anniversary
    • RDSP - close by age 59
  299. To avoid attribution, disposition must be done at __________ and loans must be at or above ___________.
    • Fair Market Value 
    • Prescribed Rate
  300. CRA allows the transfer of certain non refundable tax credits from the lower income earning spouse to the higher income earning spouse.  Name the 4 non-refundable tax credits?
    • Age Credit
    • Tuition Credit
    • Pension Credit
    • Disability Credit
  301. Name 5 listed personal property that could be used to offset gains?
    • Coins
    • Jewelry
    • Artwork
    • Rare Books
    • Stamps
  302. What are the 3 requirements for those who wish to marry under the federal civil marriage act?
    • Minimum age = 16
    • Both parties consent
    • Previous marriage legally dissolved
  303. What is another term for common law spouse?
    Unmarried Spouse
  304. In Ontario what 3 forms of relations constitutes a spouse under family law?
    • 1.  Married Couple
    • 2.  Unmarried Spouse living together for 3 years plus
    • 3.  Unmarried couple that have a child together
  305. Define reverse mortgage
    Reverse mortgage allows a homeowner 55 years or older to access equity in their home tax free without selling and can be up to 55% of the appraised value.

  306. What is another name for reverse mortgage
    Home Equity Conversion Mortgage
  307. The main issuer of reverse mortgage in Canada is _________?
    Canadian Home Income Plan (CHIP)
  308. Name 6 credit management strategies
    • 1.  Pay down high interest debt
    • 2.  Pay down or convert non tax deductible debt
    • 3.  Consolidate date
    • 4.  Shorten repayment period on a loan
    • 5.  Maintain creditworthiness
    • 6.  Ensure benefit of debt outweigh the cost
  309. What is the refinancing limit / guidelines?
    Gov't lending guideline allows one to refinance up to 80% of the appraised value with a max amortization period of 30 years.
  310. What are two options available if a seller sells hoe with an outstanding mortgage
    Portability - lender often port or move the existing mortgage over to the new property

    Assumption - buyer assumes or take over existing mortgage
  311. What are the 4 steps of the pre-qualification process for a mortgage
    • 1.  Assess the present financial situation - assets - liabilities
    • 2.  Calc the down payment
    • 3.  Calc the monthly mortgage payment
    • 4.  Calc the GDS & TDS
  312. Define estoppel certificate
    Document issued by a condo corp that gives potential purchaser info about the specific unit and the condo corp
  313. Clients will have various closing costs for closing a mortgage.  Transaction fees usually amount to _________ of the purchase price.
    2 - 5 %
  314. Name 4 fees associated with purchasing a home?
    • 1.  CMHC Insurance
    • 2.  Appraisal and Inspection
    • 3.  Tax and Land Development
    • 4.  Professional Fees (Legal FEes)
  315. Not in advance interest payments do what for the borrower?
    Not in advance reduces the total cost for the borrower
  316. Semi Annual compounding do what for the borrrower
    Semi annual compounding increases the total interest cost for the borrower
  317. What is the maximum % GDS and the max total TDS ratio allowed to be approved
    • 32% for GDS
    • 40% for TDS
  318. How do you determine credit card payment used in TDS formula
    3% of credit card limit
  319. Name the 6 key financial factors to be considered when purchasing a home
    • Mortgage Stress Test
    • Interest Rates
    • Loan to Value
    • Fees associated w mortgage
    • Term and Amortization
    • Debt Service Ratio
  320. How is loan to value calculated
    Loan amount divided by Home Value

    (exactly how it sounds loan / home value)
  321. When would lenders use power of sale over foreclosure?
    When outstanding principle and interest is less than the FMV.
  322. Name the recourse lenders have in Quebec if borrower defaults and it is the equivalent power of sale or foreclosure
    • 1.  Sale by Judicial Authority (same as power of sale)
    • 2.  Taking in payment (same as foreclosure)
  323. Name the 3 types of land registration (Title) Systems
    • 1.  Torrens or Land Titles
    • 2.  Registry Systems
    • 3.  Quebec Hypothec Systems
  324. Name and define the 2 main legal recourse for lenders when a borrower defaults on payment of home
    • Power of Sale - allows lender to force the sale of property without taking title to it provided the borrower receives lots of notice
    • Foreclosure - lender sues borrower for the title of the property in exchange for the amount owed.
  325. Define freehold
    An interest in land by which the full benefits of ownership are conferred for a indefinite period of time
  326. Define Condo
    Multi Unit Structure in which individual hold fee simple title to a specific unit
  327. Define Leasehold
    refers to an individual having the right to use certain property for a certain period of time
  328. For joint tenancy - What Unities criteria must be met?
    • All four of them
    • Possession
    • Interest
    • Title
    • Time
  329. For joint tenancy in common - what one unity criteria must be met?
  330. Define superficies ownership?
    Superficies refer to the division of ownership of construction or works situated on a immovable property

    Example.  River owned by a gov't but a dam built on river is owned by an electrical company.
  331. Define Tenancy in common
    Ownership structure involves two or more owners who own land together upon death of the owner then deceased ownership transfers to heir, not the other owner
  332. Define Joint Tenancy
    Ownership is two or more and upon death, the deceased share transfers to surviving owner
  333. The purchase of a home is a _____________ and the right to encumber a property with a __________ is a ________?
    • Primary Real Right
    • Hypothec
    • Accessory Real Right
  334. Name 3 methods of owning land?
    • Tenant in fee simple
    • Tenant in Common
    • Joint Tenancy
  335. Define tenant in fee simple
    Land that is held absolutely and forever by a person or his heirs unless sold.
  336. The sole ground for granting a divorce is that there has been a breakdown of the marriage.  A breakdown can only be established if the following two things occur?
    Spouse lived separate and apart for at least one year

    Spouse commits adultery or abusive
  337. Under the divorce act a lawyer must do what 2 things
    Discuss potential of reconciling with one spouse

    Provide info for marriage counseling
  338. Define corollary issue
    Corollary issue is a secondary issue that needs to be resolved as part of or prior to resolving main issue.

    Example - before divorce agreement determine custody of children
  339. At what point can divorcees remarry?
    When a divorce certificate is received
  340. For unmarried parents, the relevant legislation regarding children is ______?
    Children Law Reform Act
  341. Define parens patriae?
    Allows the court to make or revise any separation agreement and to intervene to protect child's rights.
  342. What organization can be used and requested by court order to conduct a social work investigation and write a report regarding where they believe is the child best interest
    Office of children lawyer (OCL)
  343. What is a domestic contract and what two things make up the contact?
    • PreNuptial Agreement
    • 1.  Each party rights and obligations during the relationship and in the event of a breakdown
    • 2.  Opt out of most traditional marriage legislation
  344. For a domestic contact to be enforceable it must be ________
  345. What are the 3 formalities to make a domestic contract enforceable?
    • 1.  In writing
    • 2.  Signed by both parties
    • 3.  Witnessed
  346. A court may dismiss a domestic contract for the following 3 reasons:
    • 1.  Failure for one or both parties to provide full financial disclosure
    • 2.  Failure for one or both parties to receive proper legal advice
    • 3.  Existence of undue, influence such as coercion, fraud or duress
  347. Define strategic wealth preservation
    Focus on retaining full range of opportunities that a clients personal resources allow him to enjoy
  348. Define human capital
    Economic or total value of an individual knowledge, skill and experience.  It's the present value of the money an individual will earn in the future.
  349. What is one word to describe the objective of wealth management
  350. What 2 attributes are required for a financial goal to be considered a useful target?
    • 1.  Must have monetary value
    • 2.  Must have a target date
  351. There are two characterization of risk - name them?
    Pure Risk - risk which there is only a possibility of loss or no loss but no possibility of a gain.  Example risk of your car being stolen or risk of house burning down

    Speculative Risk - Possibility of a loss or a gain.  Example REturn on an investment
  352. Name the difference between objective risk and subjective risk?
    Objective Risk - Not influenced by personal feelings or opinion and represents facts

    Subjective risk - Based or influenced by personal feelings or opinions
  353. Name the 4 primary objective measures of risk
    • 1.  Standard Deviation
    • 2.  Shortfall Risk
    • 3.  Pure Risk
    • 4.  Time Diversification
  354. Standard deviation is also used to create the "efficient frontier".  Define efficient frontier
    Plots the portfolio with the best potential return for a given level of risk
  355. Systematic risk is also known as ___________ or ___________?
    Market risk or undiversifiable risk
  356. Unsystematic risk is also known as ______ or _______
    Non-Market Risk or Diversifiable Risk
  357. What does monte carlo measure?
    Measures shortfall risk
  358. Name 5 steps in the personal risk management process?
    • 1.   Identify the risk
    • 2.  Evaluate the risk
    • 3.  Control the risk
    • 4.  Finance the management of risk
    • 5.  Monitor and Revise the risk management plan
  359. What are the 3 ways of tax planning strategies
    • 1.  Eliminating taxes - TFSA contributions
    • 2.  Reducing taxes - Income split
    • 3.  Deferring taxes - RRSP contributions
  360. Name the 5 information slips and when are they issued?
    • T3 - Int. Div. Capital GAins on mutual funds
    • T4  Employment Income
    • T4a - Income from pension plans, annuities or RESP
    • T5 - Investment income
    • T5008 - List the amount received from sale of securities
  361. What are 4 main deductions allowed when calc net income
    • 1.  RRSP contributions
    • 2.  Pension Contributions
    • 3.  Child care Expenses
    • 4.  Union Dues
  362. Name some available tax credits
    • Donation tax credit
    • Investment in LSVCC
  363. Name the way the 4 investment income are treated for tax purposes
    • Interest and Foreign Dividends - Marginal tax rate
    • CAD Dividends - Gross Up by 38% and div tax credit
    • Capital Gains - Inclusion rate 50% taxed and other 50% not taxed
    • Return of Capital - Not taxable but lowers the ACB
  364. CAD Dividends are grossed up by ________% and the tax credit is _________%
    38% and tax credit is 15.02%
  365. Define stock option
    Allows the employee to buy shares at a discount from the current market value.  Taxable benefit is the difference between the exercise price and the FMV
  366. Define a unconscionable transaction and give an example?
    Contract can be overturned as unconscionable because it was a shock to the court.

    Example - A stay at home mom agreed to give working spouse all of the assets
  367. Name an alternative process to resolve family law issue if you want to avoid unfriendly court of law
    Alternative Dispute Resolution (ADR) - more family friendly and less expensive
  368. In Ontario what are the 3 main domestic contracts
    • 1.  Cohabitation agreement
    • 2.  Marriage contract
    • 3.  Separation Agreement
  369. What 3 things do a separation agreement deal with?
    • Ownership and division of property
    • Custody and child support
    • Future spousal support (alimony)
  370. What 4 reasons could a domestic contract - prenup be challenged
    • Fraud
    • Signed under duress
    • Contains a material mutual mistake
    • Grossly unfair to one party
  371. Define separate regime of property
    All property, whether acquired prior to or during the relationship, any corresponding increase in value are owned strictly to title
  372. What conditions must be met for a prenup to include a waiver of spousal support
    Neither spouse depends on the other for financial support and no children are involved
  373. What 3 ways can you make a transfer within the attribution rules?
    • 1.  Direct transfer of funds (gift)
    • 2.  A loan
    • 3.  Transfer of property (sale of assets)
  374. What does related parties mean for attribution rules?
    Related party is a tax payer that is a spouse or minor children
  375. If the other party is not related to the tax payer in any way then this is known as a __________ transfer
    arms length
  376. For attribution rules:
    Type of transfer - Gift
    To Spouse - int, div, are attributed back to spouse.  capital gains are also attributed back
    To  Minor Kids - int, div are attributed back to parent but capital gains stay with child
    To Adult Child - No attribution
  377. Margin Tax Rate
    0-$45k - 15% tax rate
    $45k-$90K - 21% tax rate
    $90K-$145K - 26% tax rate
    $145k-$200K - 29% tax rate
    $200K+ - 33%
  378. How do you calculate weighted average tax
    • Total tax paid 
    • ___________
    • Total Income
Card Set